Semiconductor sales rise 9.4 percent despite price cuts

Dropping CPU prices did not hinder second quarter worldwide semiconductor sales, which rose 9.4 percent from last year to hit US$58.9 billion

Despite plunging prices for CPUs, worldwide semiconductor sales rose 9.4 percent from last year, reaching US$58.9 billion for the second quarter.

The industry struggled as chip makers like Intel and Advanced Micro Devices (AMD) slashed prices on their chips, helping to drive the average price of a laptop down by 18 percent compared to the second quarter of 2005, according to figures released Thursday by the Semiconductor Industry Association (SIA).

That global trend was mirrored in the U.S. where the average price for retail notebook PCs dropped from US$1,141 in the second quarter of 2005 to US$938 a year later, according to Current Analysis.

The price slump was offset by a rise in the total number of PCs sold, SIA said. Vendors sold 54.9 million desktops, notebooks and servers during the second quarter, a rise of 11 percent over last year, according to industry numbers compiled by Gartner.

Another saving grace for quarterly semiconductor sales was robust demand for cell phones, SIA President George Scalise said in a release. Vendors sold 235 million cell phones during the second quarter, and expect an increase of 4 percent in the third quarter and 10 percent in the fourth quarter. That would push the total number of cell phones sold in 2006 to nearly 1 billion, he said.

For June, the Asia Pacific region had the fastest rise in semiconductor sales, which increased 12.8 percent year over year to US$9.2 billion, accounting for nearly half of total industry revenues. Worldwide semiconductor sales were US$19.6 billion for June.

The slowest growth happened in Europe, where sales rose only 1.4 percent to US$3.1 billion for the month.

The European market was dragged down by a sharp decline in sales of microprocessors, according to a report Thursday from the European Semiconductor Industry Association. The high points of the European market were flash memory, DRAM (dynamic RAM) and automotive and communications semiconductors.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ben Ames

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Cate Bacon

Aruba Instant On AP11D

The strength of the Aruba Instant On AP11D is that the design and feature set support the modern, flexible, and mobile way of working.

Dr Prabigya Shiwakoti

Aruba Instant On AP11D

Aruba backs the AP11D up with a two-year warranty and 24/7 phone support.

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?